The later-life lending sector will reach evolutionary crossroads in 2024
More2life, Standard Life Home Finance, and Comentis have joined over 70 firms to sign the Comprehensive Conversations Manifesto, which was launched by later-life lending platform Air in February.
The Comprehensive Conversations Campaign seeks to raise awareness of a new demographic of customers, many of whom are expected to carry mortgage debt into their retirement.
Many members of the new demographic will rely on the support that the continuum of lifetime lending can provide for them in managing debt on a fixed retirement income, Air said.
The campaign is also aimed at supporting advisers and clients to navigate the complexities of the mortgage market, changing regulations, evolving product options, challenges in affordability and income.
Other groups that have signed the manifesto include Viva Retirement Solutions and Eadon & Co.
Signatories need to make their pledges to reach a new customer service paradigm for the UK later-life lending industry in response to the recent Financial Conduct Authority review and Consumer Duty.
Signatories to the manifesto pledge to do the following:
- Adhere to regulatory and industry guidance
- Continually enhance capabilities within the sector by providing support and education
- Keep consumer affordability as a focus of the advice process through tools and technology
- Explore all available options to customers and expand advice, product, and service offerings
- Ensure that customers have an understanding of non-product related options
- Create safer tracks for the wider industry to match good customer outcomes
In a statement, more2life Managing Director Ben Waugh said the manifesto is a starting point for a conversation but is not the final word on the Comprehensive Conversations movement.
“If the IFA sector is to honour its pledges to later-life customers, we must closely collaborate to provide quality support to advisers whilst meeting every single one of the FCA’s regulatory requirements,” Waugh said.
Comentis CEO Jonathan Barrett also noted that it is important for lenders to be prepared for a future where they recognise that there is no longer a traditional or uniform equity release customer, as the later-life lending sector will reach “evolutionary crossroads” in 2024.
Since the launch of the comprehensive campaign, it has only grown in momentum and the addition of the new signatories is another step in the journey to ensure that every later-life lending customer receives a strong outcome regardless of their entry point into the advice journey, said Air CEO Paul Glynn.
“We welcome those firms who have already signed the Manifesto, and invite those who have not to join us,” Glynn said.
Air recently launched a series of six masterclasses to support signatories in meeting the Comprehensive Conversation framework.
